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Recovery of over payment of salary paid by mistake after ret

Recovery of over payment of salary paid by mistake after retirement of employee is not permissible The Hon'ble Supreme Court in case of Syed Abdul Qadir has observed that where the excess payment is made to an employee not on account of any misrepresentation or fraud on his part, and that the employee was not aware that the amount paid to him was in excess to his entitlement, then in such cases, the recovery should not be made. It has been further observed that if the employee has either retired or is on the verge of retirement, such recovery should not be made in such situation. IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH : NAGPUR. WRIT PETITION NO.1662 OF 2013. Arun Ambadasji Chawade, VERSUS 1 The Chief General Manager, Bharat Sanchar Nigam Ltd., CORAM: SMT.VASANTI A. NAIK AND A.S. CHANDURKAR, JJ. DATED: 14TH OCTOBER, 2013. Citation;2013 (6) MH L J 533 - See more at: https://www.lawweb.in/#sthash.EEFnjhJ0.dpuf

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Arun Gautam (Manager) 11 December 2013

Sir,

In other case the employee XYZ is not retired but he has resigned the services before retirement period and joined another company.He has earlier intimated by company that due to clerical mistakes, extra amount is credit in employee's account and he has to return this amount back to the company.Is it possible to recover that amount from the employee.

Waiting for your kind suggestions and hopeful responce.

DEEPAK PRATAP SINGH (LLB,ACS) 20 May 2014

Dear Friend,

Excess Salary paid to an employee to what he is entitled to be paid should be recoverable. If he/she know the facts or facts are informed to him. The company can recover the excess amount from him.

Regards'